Goals 101 – Personal Goals (Article 1 of 5)

Jun 12, 2009  |  under Financially Elite Blog  |  by Dwight Anthony


goalsHave you ever set little goals for yourself like New Year’s Resolutions, losing weight, money goals e.t.c.? Have you found that it can be hard to hit those particular goals if you didn’t write them down and they somehow just get passed over for something else? In these sets of goal setting articles, I will show you how to set a variety of goals for yourself. Most people like to set their own personal goals, the issue is that they never put their thoughts to paper. We will examine various goal setting techniques and the types of goals you should be writing down and reviewing regularly. We will be looking at how to set Personal, Family/ Relationship, Financial, Career and Health/ Energetic goals. In this first article of 5 (five), we will be looking at how to set personal goals, so let’s get started.


What are personal goals? They are those goals that will benefit you directly. Those are the goals that if you set can make you happier, more inner satisfaction, personal development, a great vacation, more peace / meditation, time for yourself/ family and the list goes on and on. As a practice to setting these types of goals, you want to visualize yourself in that perfect setting of how your life would look if you met these goals. Next, you want to make a list of personal goals. Take a sheet of paper and write these down (now, if possible). Narrow your list down to the best 10 choices for your personal life.


Once you have this list of your goals, put a time frame on when you want to accomplish these goals. Usually, a year is a good short term goal, but you can set your personal goals to even shorter term goals like say a month or three months. Time Frame can vary from person to person, but I recommend having a set of annual personal goals as well.


Now that we have the time frame criteria for our personal goals, you want to write your goals in a certain type of STYLE. We want to write our goals in the present tense like we have already accomplished them. There have been studies to prove this is more effective to getting your subconscious on board to help you achieve your goals. So, for example do not write your goal like, “I would like to be a Happy Person”. Instead, write, “I am a Happy Person”. Do not write, “I want to lose 25 lbs”. Instead, write, “I am down to my ideal weight and have lost 25 lbs.” Next, make sure to date your personal goals, for example, “Personal Goals for 2010”. These are the criteria for writing your personal goals and make them more effective. Once you have your goals written out, put them where you will see them! You want to have them in front of you where you will them daily, better if at least twice a day. Following these guidelines will help you reach your goals in the best way.

Next article up will be how to set your Family and Relationship Goals.

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The ‘Latte Factor’…

Jun 11, 2009  |  under Financial Abundance, Financially Elite Blog  |  by Dwight Anthony

cafe3I have to give full credit to David Bach of the Automatic Millionaire series of books for this, but in a nutshell he explains in depth what he calls the latté factor.  It’s the notion that an individual can save even for retirement if they even cut out some of the luxury habits we have like buying a latté coffee every morning. If we were to save that money every day, let’s say $3.50 for our example, that adds up to about about $18.00 in a given work week.  That’s $72.00 a month and $864.00 per year.  If you put that in an investment that returns even 10% per annum, that can lead to over $50,000 over the life of that 20 year investment period!  Makes you think twice about ordering that latté every morning now doesn’t it?

 

It’s not just for latté either, it’s for all the little habits that we have and if we learn to invest that money properly can make us a small fortune down the road.  Let’s look at some other examples.  How about little vices that people depend on like cigarettes?  If each box costs us 4.00 / pack and we smoke a pack a day (based on a normal week) that is $28.00 per week and over $1,400.00 per year!  If you continue on this path, you are literally burning in smoke over $29,000 dollars over 20 years.  What if we took that money and invested it in a good investment that yields 10% per annum?  In 20 years, we could have over $80,000 towards our nest egg or even a wealth builder!  That is the power of compounding and Future Value (FV) of money when invested in something that gives a return %. 

 

Friend, what I would like to ask you is to simply ask yourself this week when tempted to spend on little habits, say, “Do I really need this or can I invest this?”.  Remember our examples above and you’ll definitely start toward a life of abundance because you will know that little money can lead to big money over time.  I have kept this post short on purpose in order for you to have maximum retention on this valuable subject of building money over time.  A little money as you can see from the above example, can add up to big money over time.   Get on the Financial Freedom road map!

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Living on 70%. The 70/30 Rule

Jun 8, 2009  |  under Financially Elite Blog  |  by Dwight Anthony


dollar_70-30The 70/30 rule is possibly one of the fastest way to build wealth. It’s where you save 30% of your income and live off the other 70% with daily living expenses. You’ve possibly heard of the 90/10 rule, where you live on 90% and save / invest the other 10%. The issue with this approach is that the 90/10 Rule works best when you are young and just starting out earning money as time will allow your money to grow and you need less of a cash cushion. If you are serious about building wealth, I recommend the 70/30 rule as it is a phenomenal way to save your income. If you don’t save it, it will be burned up in smoke – “POOF”, like a perfect illusion. You will have almost no idea how your money did this disappearing act. The 70/30 rule is also best put in place when you are possibly almost debt free for maybe the exception of your mortgage.


By being frugal in your spending and employing the 70/30 rule, you once again pickup momentum. Why I recommend getting rid of all your miscellaneous debt is because you will have a lot less distractions with what to do with your income. You will take advantage of your new found wealth by saving rather than paying towards debt. That is a good feeling knowing that you are investing for yourself rather than big business e.t.c. It is a reward system that pays itself back in dividends. First, you should definitely invest this income safely. You then want to move some of this money into higher yielding financial vehicles like treasury bonds, housing (that will eventually go back up), maybe a growth index fund. You definitely want your investment diversified and not put into anything volatile like high yield stocks with a higher risk. Stocks like this can be invested in with other ‘play’ money that you build up other than your normal savings, but you must learn everything there is about stock investing.


For business owners, same issue goes for the 70/30 rule. Which is even easier for you. You may decide to invest back some of the 70% discretionary income back into your own business. Definitely, bank at least 10%-30% of your take home salary though. See your tax advisor for specific strategies in maximizing your tax benefits here.


When we employ the 70/30 rule, it’s a more frugal lifestyle, but will eventually lead to your life goal of being financially free and clear!

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